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Retirement planrolloverseminarshow

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Contact Mary Roberts for an appointment @786-663-3959

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Retirement planrolloverseminarshow

  1. 1. Leaving your job…what can you do with your retirement plan? You Can Take It With You When You Go!
  2. 2. American General Life and Accident Insurance Company <ul><li>A member company of American International Group, Inc. (AIG) </li></ul><ul><li>In business for more than 100 years </li></ul><ul><li>Provides life insurance, accident and health insurance, and annuity products </li></ul><ul><li>Serves over 3 million customers </li></ul><ul><li>Recognized as a technology leader in the insurance industry </li></ul>
  3. 3. Agent Introduction <ul><li>Meet your qualified Agent from American General Life and Accident Insurance Company… </li></ul>
  4. 4. Existing Plan Overview <ul><li>You currently have… </li></ul>
  5. 5. What Are Your Options? Roll funds over to new employer’s plan (if it will accept them). Roll funds over to a traditional Individual Retirement Account (IRA). Have funds paid directly to you. Leave funds in former employer’s plan (if permitted).
  6. 6. Your Options <ul><li>Former employer may have forms that must be completed to allow this </li></ul><ul><li>Pros </li></ul><ul><ul><li>Money continues to grow tax-deferred </li></ul></ul><ul><ul><li>No tax consequences or early withdrawal charges until funds are withdrawn </li></ul></ul><ul><ul><ul><li>Withdrawals prior to age 59 ½ may be subject to an additional 10% federal income tax penalty </li></ul></ul></ul><ul><li>Cons </li></ul><ul><ul><li>Cannot make additional contributions </li></ul></ul><ul><ul><li>Investment options and information may be limited </li></ul></ul>Leave funds in former employer’s plan (if permitted).
  7. 7. Your Options <ul><li>If allowed, what types of contributions are accepted? (Will new plan accept after-tax contributions?) </li></ul><ul><li>Pros </li></ul><ul><ul><li>Money continues to grow tax-deferred </li></ul></ul><ul><ul><li>No tax consequences or early withdrawal charges until funds are withdrawn </li></ul></ul><ul><ul><li>May have broader investment options than old plan </li></ul></ul><ul><ul><li>Rules and options of the new plan apply </li></ul></ul><ul><li>Cons </li></ul><ul><ul><li>New plan may restrict later payouts of the rollover amount </li></ul></ul><ul><ul><li>May require spousal consent for payout of rollover amount </li></ul></ul><ul><ul><li>May have limited investment options </li></ul></ul><ul><ul><li>Rules and options of the new plan apply </li></ul></ul>Roll funds over to new employer’s plan (if it will accept them).
  8. 8. Your Options <ul><li>Offers the most options/choices </li></ul><ul><li>Avoiding tax consequences: </li></ul><ul><ul><li>Traditional qualified plans (such as 401(k)s must be rolled into a Traditional IRA </li></ul></ul><ul><ul><li>New plans that operate like a ROTH must be rolled into a ROTH IRA </li></ul></ul><ul><ul><li>Can convert a Traditional IRA into a ROTH IRA - not typically recommended due to certain taxes that may be assessed </li></ul></ul><ul><ul><li>Note: Neither American General Life and Accident Insurance Company nor any agent representing American General Life and Accident Insurance Company is authorized to give legal or tax advice. Please consult a qualified, professional legal or tax advisor regarding the information and concepts contained in this material. </li></ul></ul>Roll funds over to a traditional Individual Retirement Account (IRA).
  9. 9. Your Options <ul><li>Pros </li></ul><ul><ul><li>Money continues to grow tax-deferred </li></ul></ul><ul><ul><li>No tax consequences or early withdrawal charges until funds are withdrawn </li></ul></ul><ul><ul><li>Broad investment choices </li></ul></ul><ul><ul><li>Can consolidate retirement accounts </li></ul></ul><ul><li>Cons </li></ul><ul><ul><li>Does not allow loans </li></ul></ul><ul><ul><li>Penalty-free early withdrawals only under certain circumstances </li></ul></ul>Roll funds over to a traditional Individual Retirement Account (IRA).
  10. 10. Required Minimum Distributions (RMD) <ul><li>If you own a traditional IRA, you must start receiving distributions each year when you reach age 70½ based on an IRS formula. </li></ul><ul><li>Annual RMDs can be taken in a series of installments (monthly, quarterly, etc.) as long as total distributions for the year are at least as much as the minimum required amount based on the IRS formula. </li></ul>
  11. 11. Required Minimum Distributions (RMD) <ul><li>If you have more than one traditional IRA, you must determine a separate RMD for each IRA. You can total these minimum amounts and take the total from any one or more of the IRAs. </li></ul><ul><li>Applicable taxes will be due on the amount(s) withdrawn </li></ul>
  12. 12. Your Options <ul><li>Pros </li></ul><ul><ul><li>A portion of the funds (usually 80%) are immediately available </li></ul></ul><ul><ul><li>You have 60 days from the initial withdrawal to roll 100% of the funds into an eligible plan without incurring penalties </li></ul></ul><ul><li>Cons </li></ul><ul><ul><li>Plan administrator is required to withhold 20% and send it to the IRS for income tax </li></ul></ul><ul><ul><li>You may owe more than the 20% </li></ul></ul><ul><ul><li>Entire withdrawal will be taxed in the year funds were removed unless rolled into another qualified plan within 60 days of the withdrawal </li></ul></ul><ul><ul><li>Withdrawals prior to age 59½ may be subject to an additional 10% federal income tax penalty </li></ul></ul><ul><ul><li>Your retirement savings are reduced </li></ul></ul><ul><ul><li>The distribution may put you in a higher tax bracket for that year </li></ul></ul>The IRS calls this a “Distribution.” Have the funds paid directly to you.
  13. 13. Your Options <ul><li>Pros </li></ul><ul><ul><li>A portion of the funds (usually 80%) are immediately available </li></ul></ul><ul><ul><li>You have 60 days from the initial withdrawal to roll 100% of the funds into an eligible plan without incurring penalties </li></ul></ul><ul><li>Cons </li></ul><ul><ul><li>Plan administrator is required to withhold 20% and send it to the IRS for income tax </li></ul></ul><ul><ul><li>You may owe more than the 20% </li></ul></ul><ul><ul><li>Entire withdrawal will be taxed in the year funds were removed unless rolled into another qualified plan within 60 days of the withdrawal </li></ul></ul><ul><ul><li>Withdrawals prior to age 59½ may be subject to an additional 10% federal income tax penalty </li></ul></ul><ul><ul><li>Your retirement savings are reduced </li></ul></ul><ul><ul><li>The distribution may put you in a higher tax bracket for that year </li></ul></ul>The IRS calls this a “Distribution.” Not Recommended Have the funds paid directly to you.
  14. 14. Recap: What Are Your Options? Roll funds over to new employer’s plan (if it will accept them). Roll funds over to a traditional Individual Retirement Account (IRA). Have funds paid directly to you. Leave funds in former employer’s plan (if permitted).
  15. 15. How Can AGLA Help? <ul><li>Consider an IRA using an AGLA Freedom Annuity </li></ul><ul><li>AGLA Freedom Annuities provide many benefits: </li></ul><ul><ul><li>Backed by the financial strength of AGLA </li></ul></ul><ul><ul><li>Tax deferred growth at attractive interest rates </li></ul></ul><ul><ul><li>You own the contract – not a plan member </li></ul></ul><ul><ul><li>Easy access to funds </li></ul></ul><ul><ul><li>Can provide a retirement income you can’t outlive </li></ul></ul><ul><ul><li>Funds pass to beneficiaries outside of probate </li></ul></ul>
  16. 16. AGLA Freedom Annuities <ul><li>Easy Access to Funds during Growth Period </li></ul><ul><ul><li>Starting in the second contract year, you may make an annual withdrawal of up to 10% of the Annuity Value without withdrawal charges </li></ul></ul><ul><ul><li>Beginning 30 days after the annuity is issued, you may begin making systematic withdrawals of interest without withdrawal charges </li></ul></ul><ul><ul><li>Note: Withdrawals prior to age 59 ½ may be subject to an additional 10% federal income tax penalty </li></ul></ul>
  17. 17. AGLA Freedom Annuities <ul><li>Provide An Income You Can’t Outlive </li></ul><ul><ul><li>Option to annuitize (convert to monthly income) </li></ul></ul><ul><ul><ul><li>For the remainder of your life </li></ul></ul></ul><ul><ul><ul><li>For a fixed period of time </li></ul></ul></ul><ul><ul><ul><li>For a fixed amount </li></ul></ul></ul><ul><ul><ul><li>Joint Survivorship Options Available </li></ul></ul></ul>
  18. 18. <ul><li>Neither American General Life and Accident Insurance Company nor any agent representing American General Life and Accident Insurance Company is authorized to give legal or tax advice. </li></ul><ul><li>Please consult a qualified, professional legal or tax advisor regarding the information and concepts contained in this material. </li></ul>Additional Assistance
  19. 19. Thank you… American General Life and Accident Insurance Company

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